The Nigerian Electricity Regulatory Commission (NERC) has ordered all 11 Electricity Distribution Companies (DisCos) in the country to increase electricity traffic rates.

In a memo issued on August 25 the Eko Electricity Distribution Company, notified their customers that the increase in tariffs will be implemented on September 1.

Signed by Olumide Anthony-Jerome, General Manager of Loss Reduction at EEDC, the company stated that it had the approval of NERC to increase it’s tariff rate from between N42.44 to 58.94 depending on customer’s class, the Nation newspaper reports.

The increased tariff will remain till December before further increment in January.

“This is to officially notify you that there will be an increase in electricity tariff with effect from 1st September 2021. This increase is as a result of a nationwide mandate to implement the Service Based Tariff approved by our regulator NERC,” the memo reads.

The company urged its metered customers to adjust the rates to reflect the new tariff rate. “For metered customers with internal vending arrangements, we urge you to adjust the rates accordingly to reflect the new tariff increase as released by NERC,” it said.

In September 2020, NERC designed the Service Based Tariff (SBT) programme which will take effect in September 2021.

The SBT was implemented to stop electricity subsidy by the government and allow the Nigerian Electricity Supply Industry (NESI) generate more funds to finance the power sector.